teletracnavman · 13 2019 telematics benchmark report –us edition +small sample size results in...

TeletracNavman.com

US EDITION

2

FOREWARDA variety of fleet management

and fleet operations

professionals participated in the

survey, bringing expertise from

the retail, manufacturing and

other transportation industries.

The report examines best

practices, trends and current

issues influencing fleet

management in the United

States. The survey was

conducted online between

April-May 2019.

METHODOLOGY

AND SAMPLE

The 2019 Teletrac Navman Benchmark Survey includes responses from more than

2,100 fleet operations and fleet management professionals from around the world.

Of the total survey respondents, 563 indicated that they were based in the United

States. Respondents span operations in for-hire and private fleets, government

agencies and other fleet operations. This report provides an understanding of best

practices and fleet management trends in business, general telematics, emerging

technology, transportation, external factors and talent. Results may not amount to

100 percent due to questions with multiple selections. For reporting purposes, all

statistical values have been rounded to the nearest whole number.

3 2019 Telematics Benchmark Report – US Edition

While the most dramatic increase in telematics usage is the

2017 and 2019 shift (48% vs. 86%, respectively), usage

has increased significantly since last year (82% to 86%).

TELEMATICS KEEPS RISING

While ELD remains the top compliance concern, it has

declined compared to 2018. ELD compliance levels

parallel those of 2018, with two-thirds of companies

compliant. Companies are addressing driver concerns

around compliance primarily through mandatory education

and ELD-related communication.

ELD CONCERNS TURN DOWN

NEW FLEET, UPGRADES

INVESTING IN PEOPLE

Talent procurement, retention and development and cost

management are key challenges in US transportation.

Talent is a top investment area and a means to

achieving the chief goal of increased profits.

Majority have plans to increase / upgrade fleets via

outright purchasing to replace aging equipment.

EXECUTIVE SUMMARY

AND RECOMMENDATIONS

US

Lack of perceived need is the top reason for not

implementing telematics.

TELEMATICS IMPLEMENTATION

4 2019 Telematics Benchmark Report – US Edition

BUSINESS GOALS

AND CHALLENGES

BUSINESS CHALLENGES

AND EXPENSESTalent retention and cost management (down vs. 2018) remain

the top business challenges, and payroll the biggest expense.

Challenges directly related to driver safety - minimizing

incidents, and driver fatigue are down vs. 2018.

Finding, retaining and developing

talent

Managing costs

Growing revenue

Business expansion

Minimizing vehicle/driver incidents

Technology adoption/use

Regulatory change

Customer retention

Risk management

Driver fatigue management

Other

Payroll

Fuel

Equipment/vehicle maintenance

Purchasing new equipment/vehicles

Insurance

Raw materials

Business software

Other

30%

30%

23%

15%

14%

12%

10%

8%

6%

2%

4%

43%

32%

32%

23%

22%

6%

4%

1%▼3%

US

▼38%

▼22%

▼23%

▼23%

▼12%

▼13%

▼6%

TOP BUSINESS CHALLENGES LARGEST EXPENSE AREAS

Select up to 2 Select up to 2

* *

* New response option for 2019 ▲▼= significant change vs 2018 (% = 2018 value)6 2019 Telematics Benchmark Report – US Edition

While traffic congestion reigns as the biggest infrastructure challenge, concern about aging roads

and bridges is on the upswing.

INFRASTRUCTURE

CHALLENGES

US

Traffic congestion

Aging roads & bridges

Construction projects

Truck stops/service stations

Roadway design (length of lanes,

access to motorways/interstates)

Inadequate signage & signals

(traffic lights)

Underpasses/tunnels

Access to fuel

Other

None - not experiencing challenges

51%

29%▲23%

21%

13%

8%

4%

3%

3%

4%▼8%

16%

MOST CHALLENGING

INFRASTRUCTURE ISSUES

Select up to 2

▲▼= significant change vs 2018 (% = 2018 value)7 2019 Telematics Benchmark Report – US Edition

A TURNDOWN IN SOME

TECHNOLOGIES

More efficient GPS tracking and regulatory

compliant technology (presumably because

compliance mandates have passed) are also

lower priority.

BUSINESS GOALS

AND INVESTMENTSNot surprisingly, increasing profits and reducing operational costs are

top goals for transportation. Fleet upgrades and expansion as well as

talent development are top investment areas for meeting these goals.

US

Increasing profits

Reducing operational cost

Expanding customer base

Improving vehicle safety

Improving employee safety

Improving employee retention

Expanding driver workforce

Retaining customers

Adding new products and services

Other

Upgrading fleet

Finding, retaining and developing talent

Expanding fleet

Integrating technologies and systems

Improving customer experience

More efficient GPS tracking

Implementing technology for regulatory

compliance

Brand awareness

No investments planned

Other

32%

30%

24%

17%

15%

15%

15%

11%

5%

2%

35%▼41%

34%

28%▼37%

27%

25%

20%▼25%

15%▼23%

13%

7%

2%

TOP BUSINESS GOALS FOR 2019 INVESTMENTS PLANNED FOR 2019

Select up to 2 Select all that apply


LESS FOCUS ON FLEET

UPGRADES/EXPANSIONS

Planned investments in fleet upgrades

and expansions have declined.

Expansions spiked in 2018, but are back

to 2017 levels.

Freight delivery – both long- and short-haul – is the biggest area for growth in the US.

GROWTH OPPORTUNITY

SEGMENTS

US

Long-haul freight delivery

Short-haul freight delivery

Small package delivery

Oil & gas

Courier and messenger services

Public/government

Other

47%

43%

16%

14%

7%

6%

4%

SEGMENTS WITH BIGGEST REVENUE

GROWTH OPPORTUNITY

Select up to 2


ECONOMIC GROWTH

INCREASING FLEET

Majority have plans to increase equipment / fleet size

over the next year, primarily by making new outright

purchases to replace aging vehicles/equipment

Service demands are significantly less influential to fleet

size increases than they were in 2018.

US

57%

4%

39%

Decreasing

No change Increasing

FLEET SIZE

Replacing older equipment/vehicles

More demand for services

Domestic growth

We're expanding into different markets

Improved productivity

Improved integration with new or existing

technology

International growth

Other

57%

46%▼60%

30%

21%

18%

7%

5%

1%

63%

28%

27%

4%

1%▼5%

Buy more new vehicles/equipment

Lease more vehicles/equipment

Buy more used vehicles/equipment

Rent more vehicles/equipment

Other

REASONS FOR INCREASING

FLEET SIZE

HOW FLEET SIZE WILL

INCREASE

Select all that apply Select all that apply


TELEMATICS

Average Fuel ReductionTELEMATICS

USAGE

US

Vehicle/equipment tracking

Hours of service/driver hours

Speed

Distance driven

Driver performance

Idling

Harsh braking

Maintenance

Fuel usage

Engine hours

Proof of service/jobs completed

Lone workers

Other

74%

66%

61%

52%

42%

37% ▼43%

33%

32%

30%

29%

26%

4% ▼7%

3%

5%-10% 37%

11%-20% 14%

21%-30% 3%

31%-40% 1%

More than 40% 0%

None 45%

Average 11.0

More than half (55%) have

reduced fuel costs, which is

up significantly since 2018

(43%), with an overall

reduction of 11%,

on average.

Due in part to the recent ELD mandate, which

began to take effect in December of 2017,

Telematics usage has increased year-over-year

since the survey started. This significant increase

reflects a dramatic rise that began at 48% in

2017 followed by 82% in 2018. Telematics

continues to be used primarily to track vehicles

and equipment, with monitoring of most other

behaviors and practices steady.

Telematics functionality is grossly underutilized,

with companies using 3 (of 12 tested) features,

on average.

WHAT IS MONITORED WITH TELEMATICS

Select all that apply

▲9%


4%

10%▼14%

26%58%

2%

TELEMATICS

NON-ADOPTIONWith the ELD mandate now in effect, few continue to resist

telematics adoption; proportions of rejecters have declined 38% from

2017 to 2019 (52% vs. 14%), with a marked drop since 2018 in

those unable to acknowledge the benefits of implementation.

US

Rejecters have decreased

significantly since 2017.

Resisters cite lack of perceived

need for the technology.

No need for telematics

Cost

Product limitations/functionality

Driver reaction

Not easy to implement

Not enough time to analyze results

Other

Don't perceive a sufficient benefit

REASONS FOR NOT IMPLEMENTING

TELEMATICS+

39%

25%

12%

11%

11%

11%

9%

14%▼27%

TELEMATICS USAGE

Yes, across all vehicles/assets

Yes, but only ones that the manufacturer

provides

Yes, across some vehicles/assets

No, but I plan to in the next year

No, and no

immediate plans

to do so


+Small sample size results in reduced confidence (90% +/- 12.9%) ▲▼= significant change vs 2018 (% = 2018 value)13 2019 Telematics Benchmark Report – US Edition

Peace of mind around equipment and vehicle location is a top benefit and aligns with the

primary reason for using telematics.

TELEMATICS

TOP BENEFITS*

US

Peace of mind knowing

where vehicles/equipment

are

Meeting compliance

requirements

Improved driver

behavior

More efficient routing and

dispatching

Improved driver

safety

48% 34% 31% 25% 20%▼32%

Select up to 3


*go to appendix chart A to see all response options

FEWER INCIDENTS SINCE

TELEMATICS ADOPTION

Telematics’ impact on incident reduction has climbed

significantly vs. years past, with a notable upward shift

in incident and performance / maintenance insight.

More than a quarter cite driver monitoring, speed prevention, and

driver productivity as top telematics-related safety benefits.

Driver safety is ranked 5th as a

telematics benefit.

42%

58%

Yes No

TELEMATICS

SAFETY

US

Monitoring and benchmarking

driver behavior

Monitoring hours to prevent

driver fatigue/exhaustion

Speed preventionImproved driver

productivity/efficiency

Incident insight/detailsMore insight into vehicle

performance/maintenance needs

32% 30%

17% 17%

26% 23%▼31%

Select up to 2

▲6% ▲11%

TOP SAFETY BENEFITS

OF USING TELEMATICS

▼74%

▲26%


COMPLIANCE

COMPLIANCE

CONCERNSELD remains the top compliance concern, but has declined significantly compared to previous waves

now that the initial deadline has passed. Highway transport, though a concern for less than 20% of

respondents, has increased since 2018.

US

Electronic Logging Device (ELD)

mandate

Fuel tax

Highway transport

Hourly/pay regulations

Hourly driver fraud

In-city restrictions

Other

None

58%▼76%

18%

16%▲8%

16%

12%

8%

3%▼10%

12%

TOP COMPLIANCE CONCERNS

Select up to 2


COMPLIANCE

ELD

Hours of Service Tracking

66%

24%19%

4% 8%

ELD Paper logbooks AOBRD Not currentlytracking

Exempt fromtracking

US

Mandatory educational/informational

sessions

No driver concerns

Communicating the benefits of ELD technology

via email, newsletters or other written form

Optional educational/informational

Sessions

Other

Nothing

Less risk of compliance violations

Eliminating manual processes

Driver/public safety

Greater transparency among fleets

Other

None - I don't see any benefits

32%▼42%

29%

27%

19%

5%

11%▼21%

HOW REDUCING DRIVER CONCERNS

35%

21%

6%▼11%

2%▼7%

12%▲5%

24%

GREATEST BENEFITS

Two-thirds of companies are ELD compliant, paralleling

proportions reported in 2018.

Decreased risk of compliance violations is a top benefit of ELD. While a third of

companies indicate there is no driver concern around ELD, educational sessions

(down from 2018) and communication around ELD benefits are primary ways

companies are addressing drivers who are concerned about the mandate.

*




TECHNOLOGY

AND SECURITY

TECHNOLOGY

IMPLEMENTATION

& IMPACTDriver warning / alerting tops the list

of technologies to be implemented.

One-quarter are considering

implementing it and it is expected to

have the biggest impact.

Very few plan to implement autonomous driving

vehicles and feel the nascent technology won’t

affect business until about 2027.

US

Driver warning/alerting technology

Big data analytics

Fatigue monitoring

Autonomous/self-driving

vehicles/equipment

Machine vision technology

Artificial intelligence

Smart cities

Drones

Platooning

Other

None

35%

15%▲10%

14%

16%

6%

9%

3%

3%

2%

2%

28%▼34%

AVERAGE YEARS UNTIL AUTONOMOUS DRIVING EXPECTED TO IMPACT

BUSINESS

9.1

Select up to 2

POTENTIAL 2019

IMPLEMENTATIONGREATEST

IMPACT ON

OPERATIONS

28%

11%▲7%

8%

3%

3%

2%

2%

2%

1%

5%

54%

Select up to 2


BIG DATA

ANALYTICS One-quarter are using big data analytics to guide strategic

business decision making, with levels matching those of

previous years.

Using big data to forecast hiring needs, however, is a distant second to

manual processes. Lack of internal expertise / resources may be to

blame. Implementation consideration and impact of big data analytics is

up significantly vs. 2018.

Manually pulling

records/paper-based processes

36%

Tools for big data analysis

20%

Guessing

15%

Other

9%

Not currently doing this

30%

Forecasting

Business Hiring

Needs

US

15%

11%

23%

61%

15%

No, but plan to in futureYes

BIG DATA USED FOR STRATEGY DEVELOPMENT

No


▲7%

▲10%

BIG DATA ANALYTICS WILL HAVE

GREATEST IMPACT ON BUSINESS

OPERATIONS

CONSIDERING IMPLEMENTING BIG

DATA ANALYTICS IN 2019


Big Data is becoming more common

place as companies look for ways to

improve efficiencies and increase

profits. More and more businesses see

Big Data as an important tool for

success.

TECHNOLOGY /

MOBILE DEVICES

Majority of companies offer mobile technology to drivers and operators, facilitating

improved asset tracking and direct communications.

61% 5% 39% 10%

US

Easier GPS/fleet/asset tracking

More direct communications

Ease of reporting

Operational efficiencies

Better fuel management/tracking

Other

None

57%

42%

33%

24%

7%

1%

2%

MOBILE DEVICES/TECHNOLOGY ARE OFFERED TO

DRIVERS/EQUIPMENT OPERATORS FOR FLEET ASSET MANAGEMENT

Yes No, but plan to No No, employees can

bring devices to work

*

MOST IMPORTANT MOBILE TECHNOLOGY

EFFICIENCIES/ BENEFITS

Select up to 2


Equipment theft and customer / employee data are top security concerns.

SECURITY

CONCERNS

US

Theft of equipment

Customer information/data

Employee information/data

Theft of tools

Theft of fuel

Cyber security of truck/equipment

technology/data

Theft of loads

Other

None - we don't have any security

concerns

25%

24%

22%

15%

14%

12%

9%

5%

22%

BIGGEST SECURITY CONCERNS

Select up to 2

*


TALENT

More than half plan to increase drivers

and equipment operators in the next year.

TALENT

RECRUITMENT

Primary recruitment methods are

online job boards and referrals.

US

Planned Staff

Increases

Referrals

Online job boards

Social networking (e.g., LinkedIn,

Twitter, etc.)

Corporate website

Print media/trade publications

Job fairs

Recruit former drivers/operators

Outside recruiters

Offer sign-on bonus

Driver/operator schools/training programs

Apprenticeship program

Armed forces partnerships

Trucking shows / tradeshows

Other

64%

54%

39%

33%

20%

17%

16%▼21%

14%

14%

11%

6%

5%

3%

4%

RECRUITMENT METHODS Select all that apply


Drivers/equipment operators 58%

Fleet/equipment operations 18%Maintenance

managers/professionals 14%

Dispatchers 13%

Safety/compliance professionals* 11%

Technology experts 7%

Telematics professionals 4%

Other, please specify 1%

None 27%

▼17%


TALENT

RETENTION

US

Increasing pay

Upgrading equipment

Driver appreciation programs (BBQs, lunches, etc.)

Performance-based bonuses

Recognition/rewards programs

Improving benefits

Guaranteed weekly rate

Profit-sharing plans

Promote drivers to lead peer training program

Pay from per-mile to salaried

Owner programs-convert to independent contractors

Other

Not doing anything from this perspective

47%

33%

33%

30%

25%

24%

13%

11%

6%

5%

3%

2%

16%

Improving employee retention is a top investment area for 2019. Primary

retention tool is pay increases. Four of the top five tactics are monetarily linked.

RETENTION METHODS Select all that apply

*


57%

REWARDING SAFE DRIVING

73%

MONITORING DRIVER BEHAVIOR

Majority monitor driving, a practice that has been steadily climbing since 2017. More than half reward

safe driving, the biggest result of which is fewer incidents.

DRIVING

BEHAVIOR

US

Fewer safety violations/incidents

Improved driver retention

Improved customer service

Too early to tell

Other

None

58%

33%▼52%

27%▼36%

23%▲14%

1%

6%

▲56%

RESULTS OF SAFE DRIVER REWARDS



DRIVER

SHORTAGES

About half are currently experiencing driver/operator

shortages and using pay increases as a top lure for

talent. Increased demand, if addressed at all, is solved

primarily by establishing more efficient driver routes.

47%53%No

Yes

HOW ISSUES ARE ADRESSED

DRIVER / EQUIPMENT OPERATOR SHORTAGE

US

More efficient routes for drivers

Outsource drivers/equipment operators

Outsource trucks/equipment

More reliance on technology/telematics

Other

We don't do anything different when

demand increases

Increasing pay

Offering better benefits

Providing flexible work arrangements

Developing educational/training programs

Hiring freelance/contingent drivers/equipment

operators

Investing in wellness programs

Other

Not doing anything

55%

32%

28%

19%

14%

10%

6%

11%

36%

22%

21%

13%

6%

24%

METHODS FOR MANAGING INCREASED

DEMAND FLUCTUATIONS

HOW DRIVER/OPERATOR SHORTAGE

IS ADDRESSED

Select all that apply Select all that apply


RESPONDENT

PROFILE

US

44% 41%

9% 6%

Other Transportation Manufacturing Retail

INDUSTRIES*

VEHICLES IN FLEET

Owner 14%

Administrative (back

office functions) 12%

Executive/vice

president/managing

director12%

Operations manager 11%

Fleet/equipment

manager 11%

ROLE*

DRIVER & EQUIPMENT OPERATOR

WORKFORCE MAKE-UP

Full-Time 83% ▲67%

Part-Time 6% Majority Contractors

(FT or PT)* 9%

Other 2%

FLEET

OPERATIONS 29%

Government Agency

& (Other)

63%

Private

8%

For Hire1-9 31%

10-24 25%

25-50 19%

51-100 9%

101-500 11%

500+ 5% ▼8%

Average 79 ▼100


*See appendix Chart B for all

response options *Go to appendix Chart C to see all response options

APPENDIX

US

Top Telematics Solutions Benefits

Select up to 3

Peace of mind knowing where vehicles/equipment are 48%

Meeting compliance requirements 34%

Improved driver behavior 31%

More efficient routing and dispatching 25% ▼ 32%

Improved driver safety 20%

Improved customer service 15% ▼ 23%

Time/cost savings 9% ▼ 15%

Fewer incidents 8% ▲ 4%

Improved fuel efficiency 7%

Reduced maintenance costs 6%

Preventing fuel loss 4%

Fewer unexpected equipment failures 4%

Reduced insurance premiums 4%

Reduced incidents/theft 3%

Other 3% ▼ 12%

None* 6%

Role

Owner 14%

Administrative (back office functions) 12%

Executive/vice president/managing

director12%

Operations manager 11%

Fleet/equipment manager 11% ▼ 15%

Safety manager 8%

General/regional manager 7%

Dispatcher/dispatch manager 6%

Site manager 3%

Compliance manager 3%

Maintenance manager 2% ▼ 4%

Service technician/fleet maintenance 2% ▼ 4%

Service manager 1%

Production manager <1% ▼ 1%

None 7%

30 2019 Telematics Benchmark Report – US Edition * New response option for 2019 ▲▼= significant change vs 2018 (% = 2018 value)

Chart A Chart B

Industry

Professional Services 5%

Education 3% ▲ 1%

Health Care/Pharmaceutical 3%

Government 3%

Energy/Utilities 2% ▼ 5%

Technology 2%

Non-profit 2%

Telecommunications 1%

Leisure/Hospitality 1%

Defense/Aerospace 1%

Insurance 1%

Media 1%

Other 19%

Chart C

THANK YOU

Teletrac Navman is a leading software-as-a-service (SaaS) provider leveraging location-based technology and services for managing mobile assets. With

specialized solutions that deliver greater visibility into real-time insights and analytics, Teletrac Navman helps companies make better business decisions

that enhance productivity and profitability. Its fleet and asset management technology uncovers information that would otherwise go unseen, helping

customers reduce risk and confidently move their business forward with certainty. It tracks and manages more than 550,000 vehicles and assets for more

than 40,000 companies around the world. The company is headquartered in Glenview, IL, with additional offices in the United States, United Kingdom,

Australia, New Zealand and Mexico.

CONTACT US

[+1] 800.835.3872

TeletracNavman.com

https://twitter.com/teletracnavman

https://www.facebook.com/TeletracNavman/

https://www.linkedin.com/company/teletrac/

teletracnavman · 13 2019 telematics benchmark report –us edition +small sample size results in...

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